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  • Making Retail Personalization

    More Relevant

    Based on the Brick Meets Click presentation

    given at the Annual Food Industry Summit Saint Josephs University, March 13, 2014

    By Bill Bishop

    Chief Architect, Brick Meets Click

    Follow us

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    Brick Meets Click delivers the strategic insight and guidance that retailers, suppliers, & technology

    providers need to drive growth by meeting shopper needs in an omnichannel environment .

  • March 2014


    Many leading food retailers have made progress in personalizing offers in

    particular, their circulars. This is key to making it easier for customers to find the

    items they want from among the 30,000 to 40,000 on store shelves.

    But the real question is:

    Does personalizing the offer go far enough to win the hearts and minds of


    A report on Omnichannel Personalization by The CMO Club* indicates that the

    answer may be NO and shows how retail marketers are moving beyond just

    personalization of offers to personalizing the shopping experience and building

    the basis for future purchases.

    We want to build on the conversation started by The CMO Clubs paper and

    explore examples that will help food retailers move beyond the limits of

    personalized offers and toward engaging more fully with their customers via

    omnichannel personalization.

    * The reports lead author is Nadine Dietz, SVP of Global Consultancy 5one; request a copy

    Why personalization?

  • March 2014


    Whats the problem?

    Shoppers are not reacting the way they used to to marketing and promotions.


    Your offering has to change.

    More Information

    Greater Choice

    Increased Market Power

  • March 2014


    Why translate omnichannel personalization into

    todays food retail?

    Aligning the offer with your shoppers perspective

    Winning the trip

    Interaction makes customer segmentation more dynamic

    Retention is more profitable/efficient than acquisition

  • March 2014


    Accessing more new

    information sources

    Communicating more

    frequently online


    These shoppers expect more options.

    Omnichannel describes the empowered

    shopper who is:

  • March 2014


    It shows you understand who

    they are.

    It sorts through all the choices

    to make it easier for them to

    find what they want.


    Personalization will soon be REQUIRED to satisfy

    the empowered shopper.

    Personalization is one way to appeal more

    effectively to the empowered shopper

  • March 2014


    The core principles of omnichannel personalization


    Emphasize these

    principles as you

    navigate the


    marketplace and

    embrace the digital

    path to purchase.

    Expanding engagement

    Creating experience

    Increasing retention

  • March 2014


    Adjusting to the Digital Path to Purchase One of the ideas highlighted in the CMO Club report is the shift from the traditional

    concept of path-to-purchase to the notion of a customer journey on which all the new

    digital touchpoints can play an active role. We see opportunities to translate this

    idea to food retailing.

    The shopper

    In home

    On the go


    On the web


    Here are eight examples from outside

    of the food industry that fit into a

    customers digital path to

    purchase/journey. These will help you

    visualize what is possible.

    At the end of each example is specific

    guidance in the form of a takeaway,

    plus a call-out for ideas about

    translating the key idea to your


  • March 2014


    In home

    Following the customers lead IKEA personalizes communications by analyzing the way customers communicate inside the stores loyalty program, IKEA Family. They look at how each customer engages with them via email, mobile, social and the store website, and then IKEA develops purchase triggers to deliver communications in a way that shoppers have shown they want to get them. In this way, IKEA personalizes communications to fit each individual customers digital preferences. Their engagement is particularly effective as they connect customers with whats available in the store. IKEA believes our storeis our richest source of content.

    Takeaway: Find ways to personalize communications

    that match your shoppers digital activities. This shows

    you know them so well you can anticipate their



    Expanding engagement

    Creating experience

    Increasing retention

  • March 2014


    Reserving items anywhere/anytime

    Takeaway: Identify options for customers to blend

    online shopping with the convenience of store pick-

    up, and give them the confidence that what they want

    will be there when they want it. This encourages a trip

    to the store.


    The Gap opens up more personal choice for its customers through a Reserve In-store program that was tested in 2013. The service was so well received that its now rolling out across the country. Online, customers can reserve an item at a nearby store anytime of day or night. The store sends them a text reminder when the item(s) have been set aside for them, and customers then complete the purchase at the store when its convenient for their personal schedule.

    In home

  • March 2014


    Creating value from "moments"

    Takeaway: Look for opportunities to increase the

    personal value of rewards by delivering them

    immediately following the desired action by your

    customer. This connects your business with the

    satisfaction and emotion of being rewarded. In the

    words of Brian Wong, Respect the customer.


    Brian Wong, Founder of Kiip (pronounced keep), uses rewards to create a wow experience with apps. Its a way to connect the virtual and the physical worlds by bringing alive the moment with an immediate reward. In a task management app sponsored by manufacturers called rewards, customers are given a reward each time they cross a task off their to-do list, thus providing immediate gratification.

    On the Web

  • March 2014


    Experiencing life with your shopper

    Takeaway: Retailers can tap into the popularity of

    reality shows by providing individual customers

    with ways to become part of events themed

    around holidays and other occasions like back-to-



    Targets Bullseye University streamed a live, 24-hour reality-TV-like dorm event to connect with college students.

    The program offered advice as well as fun and prizes, and students could personalize it by: Calling in their own question Sending in a photo for a chance to have a caricature

    drawn on the show

    Bullseye University didnt simply break through the clutter with a video of college students; it invited them to be part of it.

    On the Web

  • March 2014


    Making shopping easier

    Takeaway: Develop ways to personally engage

    shoppers that simplify their lives by helping them

    keep track of what theyve bought, especially the

    products that are really important to them.


    Sephora has streamlined the way it connects personally with each of its shoppers via the stores app and website. They make it easy for customers to keep track of all their Sephora

    purchases in one place, whether they were made in-store or online. They give customers an easy-to-use and fun place to personally

    engage called My Beauty Bag. They reserve a special area for products I love, and make it easy

    for customers to access the rich content of Sephoras website. They automatically enroll customers in the store loyalty program

    when they sign up for My Beauty Bag.

    On the go

  • March 2014


    When At Your Service is at your finger tips

    Takeaway: The same customer will come to the

    store with different needs depending on the

    shopping occasion. Good customers can be made

    even better customers by giving them exactly the

    experience theyre looking for.


    Neiman Marcus offers an At Your Service app that gives customers an easy way to build the personalized experience they want on their next visit to the store.

    Via the app: A customer can book an appointment with their favorite

    sales associate as well as ask questions and send them messages.

    Customers can also call out their favorite products to be automatically communicated to the sales associate, and the app will alert the associate the moment they enter the store so they can have immediate service.

    On the go

  • March 2014


    Augmenting the in-store experience with iPads

    Takeaway: Food-shopping customers also enjoy the

    discovery that can happen when they learn

    something new. Imagine how you could surprise and

    delight your customers with this experience.


    Kate Spade, the apparel retailer, is personalizing the in-store experience in its Saturday Stores by bu